Bhubaneswar: The Centre today rejected Odisha government's demand of increasing the rate of coal royalty at this juncture, saying such a move would affect the common man.

"We believe that the rate of royalty on coal at this point of time is OK. Any increase if the rate of royalty on coal will led to increase in the cost of power. So ultimately, it will impact the common man," said Union Coal Secretary Anil Swarup who met Chief Minister Naveen Patnaik here.

The Centre at this point of time has no consideration to increase the rate of coal royalty, Swarup told reporters.

Odisha's Mines Minister Prafulla Kumar Mallick, however, said that the coal royalty rate revision has been pending since over a year. "The Centre should also consider the situation of coal bearing states which face all kinds of hurdles and suffer environmental impact due to coal mining."

"If they do not increase the royalty rate, the Centre should consider socio-economic impact of the coal mining and compensate the loss," Mallick said.

Coal producers now pay only 14 per cent as coal royalty to the state. The Centre had last revised it in April 2012 though there is a provision to revise the royalty in every three years, Mallick said.

He said that the state government already raised the issue on a number of platforms. During his recent meeting with Union Finance MinisterArun Jaitley in New Delhi on October 12, Chief Minister Naveen Patnaik demanded that the Centre consider revision of coal royalty.

Asked about the state's demand to get share from the National Clean Energy Fund, the Union coal secretary said the coal ministry is not dealing with the fund.

Swarup, while replying to a question on coal block auction, said that unless there was demand, there was no point in putting blocks on auction.